The growing regulatory opposition to the use of antibiotics is a burning issue that’s compelling companies in the poultry pharmaceuticals market worldwide to change their production strategies. In a market defined by the unbridled use of antibiotics for both prevention and cure, this change is proving to be as drastic as it is difficult. But with leading companies such as Merck, Zeotis, and Ceva showing the way, the poultry pharmaceuticals industry is expected to brave this transition and experience sustained growth.

The focus has now shifted on acutely targeted use, in part because governments are keeping a close watch on antibiotic use in poultry pharmaceuticals and partly because the largest companies are co-operating to gradually phase out the use of antibiotics.

Spending on poultry pharmaceuticals amounted to US$3.7 bn in 2015 and this figure is expected to soar at an 8.5% CAGR to touch US$7.8 bn by 2024. This points toward sustained growth for the global poultry pharmaceuticals market. However, these rates could vary from country to country – developing economies are expected to up the consumption of poultry pharmaceuticals at a higher rate than their developed counterparts. Even as the poultry pharmaceuticals market braces for a sweeping “no-antibiotics” phase, there are several emergent trends and opportunities that can be leveraged.

How is the poultry pharmaceuticals industry dealing with the mounting threat of avian influenza?

The development of new technology vaccines to combat avian influenza is inevitable for companies in the poultry pharmaceuticals market. Even as this occurs against the backdrop of consumers seeking food that is fresher and healthier, properly and safely treating diseased or infected chickens is becoming a tough balancing act for farm owners. With the threat of avian influenza becoming increasingly real in many countries worldwide, companies facing a pressing need to fine tune their production systems. While Ceva has announced the development of a new AI H7 vaccine recently, Zoetis was granted a conditional license by the U.S. Department of Agriculture in Q1 2016 for an avian flu vaccine for avian influenza caused by the highly pathogenic H5N1 virus.

The launch of new technology vaccines is turning out to be the most defining trend in the poultry pharmaceuticals market. In the midst of all of these changes, ensuring biosecurity through timely and effective vaccination programs is proving to be a sizable challenge.

How are the methods of administering poultry pharmaceuticals changing?

Of the key product segments—vaccines, drugs, and feed additives—in the poultry pharmaceuticals market, the emergence of feed-additive-based medications is paradigm shifting. Poultry farmers have traditionally preferred vaccines over other forms of pharmaceutical products because of the former’s immediate effect.

In fact, the poultry vaccines segment was the most valuable in the global poultry pharmaceuticals market in 2015. Poulvac was the most widely used vaccine and is expected to enjoy that status until 2014. But that trend has begun to turn with both revenues and volume sales of feed additive medication on the growth track. The ability of feed based medication to easily dissolve with poultry feed is a strong reason fueling its take up.

While the chicken segment has traditionally been the leading consumer of poultry pharmaceuticals, duck farming is catching on in many countries and a massive opportunity is in the works in pharmaceutical products for ducks.